Market Growth & Profit Growth Remain Strong

Throughout the whole period, the global market has continued to see high energy prices and strong demand for raw materials, although growth rates slackened slightly. Compared to last year, orders have been very strong in the Group's two largest segments, mining & materials handling and marine & offshore, with somewhat weaker performance in pulp & paper and sugar. Growth was strong in Scandinavia and the rest of Europe. North America, Asia and Australia saw somewhat weaker growth, but these markets saw a significant upswing in the later part of the period, particularly North America and Asia. Orders increased in all markets during Q3, and total orders climbed by 26 percent. Profit growth remained strong thanks to soaring volumes, improved margins and rational utilisation of resources in production. Operating profit for the period was 238 MSEK, an increase of 31 percent. The operating margin rose by 3 percentage points to 19.3 percent. Cash flow from current activities was +200 MSEK, compared to +137 MSEK last year. The new sales company in South Africa has been established and will be fully operational by year end. Lean Manufacturing is gradually being implemented in production and is already showing positive results. "Hägglunds Drives’ growth continues. It's extremely gratifying to see the success of our new high-power system Gemini – not only in the applications that the system was originally developed for, but also in several other areas," says CEO Per Nordgren.

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